Best cryptocurrency for long term investment

Best cryptocurrency for long term investment

If you are looking to buy your first cryptocurrency, you may feel a bit confused about the best cryptocurrencies for long-term investment. In addition to the large number of cryptocurrencies available in the market, the logistics of opening your cryptocurrency account and depositing funds can also be daunting. Let's take a look at some tips to guide you through the process of choosing the best cryptocurrency for long-term investment.

Reduce the risk

Risks are an integral part of investing in cryptocurrencies, so it is best to stay prepared. Before we share with you the best cryptocurrencies for long-term investment, let's take a look at some ways to protect yourself from risks.

• Only invest money you can afford to lose: Cryptocurrencies are volatile, so you can win or lose your assets in just one week. There are many currencies that are doomed to failure, so do not invest the money you need to not be affected if the market crashes.

• Load up your emergency fund and retirement savings first: Don't treat investing as an opportunity that won't be repeated. Make sure that you save for priorities before you even think about investing.

• Do not invest more than 5% of your total portfolio: Make sure that your digital assets are only a small part of your balanced portfolio, so as not to be affected too much by market volatility.

• Use a good app for digital transactions: Find the most secure platform to store your assets. An offline cold wallet may be the best option in terms of providing additional protection against hacking.

• Do the necessary research: You are not required to become a blockchain expert, but you do need to know the basics. How will you be able to pick the best digital currencies for long-term investment?

• Invest in the long-term: Don't look for quick wins, take a long-term investment approach to avoid panic buying or selling, and focus on currencies that have real interest and are likely to do well over time.

Let's take a look at the best cryptocurrencies for long-term investment:

1- Bitcoin (BTC)

Bitcoin is the greatest cryptocurrency, it continues to be a leader in terms of market capitalization since its inception. More established cryptocurrencies have a better chance of surviving any future problems, Bitcoin has weathered several market crashes, and it is also affecting the prices of smaller cryptocurrencies.

Remember that regulation in this industry is very minimal, which leads some people to manipulate the markets, especially if you are investing in small cryptocurrencies.

You are not required to buy an entire coin. Cryptocurrency exchanges allow you to buy only parts of the currency. You can buy $10 of bitcoin if that's all you want to invest in.

2- Ethereum (ETH)

Ethereum is the second largest cryptocurrency. This coin is distinguished by its technologies that support the decentralized finance industry, in addition to being the first to launch smart contracts that developers use to program applications on the Ethereum network.

There is no perfect digital currency, and Ethereum is also not immune from network congestion and high fees, which hamper its scalability. This prompted it to work on its own Eth2 upgrade, which is expected to be released in 2022.

Many competing coins have grown faster and cheaper, but Ethereum still takes the lion's share of applications.

3- Cardano (ADA)

Cardano is the latest cryptocurrency in the list of best cryptocurrencies for long-term investment, which makes it riskier. But this does not negate that it is a great way for new investors, it has partnerships in many countries in Africa such as a deal with Ethiopia’s Ministry of Education to register students’ academic records on the blockchain.

Take a slow and steady development approach. It aims to solve the problems faced by Ethereum. But this is also a challenge for it, as there are many other digital currencies that work on the same thing and that attract a number of developers and investors as well.

You have to take the time to understand this cryptocurrency investment industry and get used to market fluctuations etc. This type of investment is risky, so follow the tips provided to you by the list of the best digital currencies for long-term investment, and commit to investing in large currencies until you build enough confidence to branch out.